Report reveals banks as the key to digital identity success
Digital identity is also an opportunity to solve banking’s existential crisis
A new report launched today by strategy advisors Arkwright and commissioned by Signicat, a leader in verified digital identity solutions, examines the success of digital identity in the Nordics, and explores how other countries can learn from this model.
The report, Federated e-IDs as a value driver in the banking sector based on experience from Nordic markets, distils Signicat’s 12 years of experience with federated digital identity. Signicat not only helps banks make use of re-usable digital identity but also become digital identity service providers, enabling digitalisation and new business models within the public and private sector. Using these providers, citizens and business users can access their services of choice quickly, easily and safely. With identity a key component of establishing mutual trust, there exists a multi-billion-dollar global market opportunity for those willing to take it.
“There are many failed and failing digital identity schemes around the world, and a handful of successes that can be a blueprint for success,” said Frank Wunderlich, Associate Director at Arkwright. “Four of these successful digital identity schemes are close neighbours in the Nordics—it makes sense to examine these closely to discover what makes them tick and where they have learned from each other.”
The four digital identity schemes examined are:
- BankID in Norway: 3.9 million users, 74% penetration
- BankID in Sweden: 8 million users, 78% penetration
- NemID in Denmark: 4.8 million users, 85% penetration
- TUPAS in Finland: 4.7 million users, 87% penetration
“Digital identity services could be the centrepiece for banks’ shift toward trust rather than transaction providers,” said Arne Vidar Haug, Chief Strategy Officer and Co-Founder at Signicat. “Right now, the strict KYC and strong customer authentication (PSD2 STC) processes they need to follow are merely a cost, but they could be the key to a new business model based on digital identity.”
The report is available for download below.
Established in 1987, Arkwright is a strategy advisory firm with a staff of about 100 professionals and partners, with offices in Hamburg, Oslo and Stockholm. Arkwright is owned by senior staff. Arkwright is pragmatic about methodology and passionate about creating results for clients. Because every client faces its own set of unique challenges, Arkwright believes that each one requires tailored, client-oriented advice based on strong analytical skills and deep business know-how. Arkwright contributes to its clients’ success with expert industry insights and facts that matter. Arkwright closely works with a wide range of private corporations—both small cap and large, blue-chip companies—all of which share the objective of optimizing their businesses and increasing profitability.